A Company's Cooperation with Influencers: Contract Design, Valuation and Tort

Emilie Matilde Gleerup Knudsen

Student thesis: Master thesis

Abstract

In this thesis it will be examined how the contractual basis for the relationship between a corporate business and an influencer can be formed. This will be assessed from a corporate business point of view. The thesis evaluates how the contractual basis can protect the business against losses like loss of value or reputation. This is done through an analysis of how the business is valuated and how this valuation can be affected if the influencers reputation is harmed. This thesis recommends that a provision is established and the common goals between the parties should be integrated as a part of the contract. The parties should consider and agree on how a possibly conflict will be handled between them. If this is not decided in advance it can cause further and unnecessary discussions if a conflict arises. Furthermore, the thesis recommends that other provision should be included in the contract, specifically a reputation provision and an extension of the Danish principle of loyalty. These recommendations derive from the analysis of the potential loss in the company’s value, which can be severe if the company’s reputation ends up being harmed. Additionally, it is recommended that the company terminates the contract immediately if the influencers reputation is harmed in a way that can cause negative associations with the company. This recommendation should be upheld even if it can result in a claim from the influencer as the recommendation can save the company from further losses. It is discussed if the influencer can be held responsible for a potential decrease in the company’s value, however this discussion ends up inconclusive, as it depends on the specific contract and incident. Whether the influencer can be held responsible or not comes down to the company’s ability to lift the burden of proof. The thesis concludes that the implementation of different provisions can protect the company against reputational harm, but the company should still develop a plan for recovery and consider taking out insurance coverage. The thesis also concludes that it is doubtful whether the influencer can be held responsible for the loss in the company’s value.

EducationsMSc in Commercial Law, (Graduate Programme) Final Thesis
LanguageDanish
Publication date2021
Number of pages85
SupervisorsKim Østergaard